Any tax implications for lending brother-in-law money?

adox

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I’m looking to give my brother-in-law a loan of £5000 Sterling(he lives in the UK). Are there any tax implications for either of us on both the lending and repaying of this loan?
 

cremeegg

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If you charge him interest then no tax implication for him, you have the interest as a taxable income.

Don't charge him the interest and its a gift to him, the interest if under €3k would be disregarded as a gift.

Don't lend your brother in law money unless you are happy to smile nicely if its never repaid.
 

adox

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121
If you charge him interest then no tax implication for him, you have the interest as a taxable income.

Don't charge him the interest and its a gift to him, the interest if under €3k would be disregarded as a gift.

Don't lend your brother in law money unless you are happy to smile nicely if its never repaid.
Thanks cremeegg. I won’t be charging him any interest, just a straight loan with the amount borrowed to be paid back.
So it sounds like there shouldn’t be any tax implications from your post.

Of course it will be a good faith loan sothere is a possibility it won’t be paid back but we are pretty close, I’ve known him nearly 30 years, so am comfortable lending him the money and confident of being repaid in full.
 
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